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Wednesday June 06, 2012
Pro Timing: Triple play in gas
by Curtis Hesler, editor Professional Timing Service Natural gas has backed off to $2.40 after hitting $2.84 last month. I am going to go out on a limb here and say the low is in at $2.09 set in April, basis the July contract. I had been looking for the $3.00 level to confirm a turn to the up side; but obviously, breaking above that $2.84 high is important now. All in all, natural gas is looking more positive as each week passes. Natural gas will play a greater part in American energy supplies in the future. To begin with, the U.S. has plenty of gas to exploit. Natural gas electrical power plants can be constructed in about 18 months, and they are much cheaper to operate than other fuel sources. Enerplus (ERF) looks silly cheap here. Its natural gas production is a drag on earnings, and I am worried that they may cut back the dividend. We also think Apache (APA) looks attractive under $85.00. If you want a deeper bid at this point, I would try for some at $70.00. They are the very best at putting new life into old and tired oil fields. Our buy price for Teekay LNG Partners LP (TGP) is $36.00. For the more adventuresome of you, you might think about scaling in with an initial purchase at $36.00 and additional purchases at $34.00. The worst that could happen is that you would end up not buying at the lower price and would hold fewer shares than originally intended. Learn more about this financial newsletter at Curtis Hesler's Professional Timing Service. Related articles: 
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